|Bid||10.840 x 0|
|Ask||10.860 x 0|
|Day's range||10.660 - 11.100|
|52-week range||10.080 - 19.140|
|Beta (3Y monthly)||1.05|
|PE ratio (TTM)||6.80|
|Earnings date||21 Aug 2019|
|Forward dividend & yield||0.35 (3.23%)|
|1y target est||21.74|
Today we'll take a closer look at Geely Automobile Holdings Limited (HKG:175) from a dividend investor's perspective...
(Bloomberg Opinion) -- France SA’s romance with the Chinese car industry could be nearing its end.Dongfeng Motor Corp., a state-owned giant that runs joint ventures with PSA Group, Nissan Motor Co. and Honda Motor Co., is looking at options for its 12.2% stake in PSA including a sale or bond issuance backed by the stock, people familiar with the matter told Bloomberg News on Thursday.On purely financial terms, such a move makes a great deal of sense. Dongfeng bought the shares as part of a 2014 bailout of the maker of Peugeot and Citroen cars, brokered by the French government. That investment has done rather well: PSA has seen the third-best share performance in Bloomberg’s Global Automobile Valuation peer group over the past five years, after Geely Automobile Holdings Ltd. and Fiat Chrysler Automobiles NV. The 800 million euros ($897 million) Dongfeng spent at the time is now worth around 2.2 billion euros. On top of that, the operational ventures that underpinned the shareholding have seen better days. Listed subsidiary Dongfeng Motor Group Co.’s sales of Peugeot- and Citroen-branded cars fell by about half in the first six months from a year earlier and are running at less than a quarter of their level in 2015. In the key crossover SUV market, models like Citroen’s C5 Aircross and Peugeot’s 4008 have simply failed to catch fire against competition from Asian and domestic rivals.Unless there’s a serious pick-up in the second half, Dongfeng’s PSA production lines, dedicated to turning out as many as 600,000 vehicles a year, will be running at little better than 25% utilization – levels at which it should be hard for the business to make money. Losses at Dongfeng’s PSA venture were already running at the equivalent of $251 million in 2018; it would hardly be surprising if they were worse this year.Management in China clearly see little sign that sales are about to pick up. Dongfeng’s dealer network for PSA-branded cars shrank by almost 80% between 2015 and 2018, and now stands at just 666 outlets compared with 1,186 for Renault-Nissan marques. The showrooms that remain suffer low productivity, shifting an average of 400 PSA vehicles each in 2018 compared with 1,431 at Nissan outlets and 761 at Honda-branded locations. (For what it’s worth, Renault does even worse, on just 204 vehicles).There’s a more proximate issue, too. Cash has been looking a little tight for Dongfeng’s listed subsidiary of late, owing largely to a huge increase in working capital, two years of negative Ebit, and net debt of 2.15 billion euros that was running at 8.1 times Ebitda at the end of December. In the 2018 fiscal year, operating cash flows actually turned negative to the tune of about 1.25 billion euros, a relatively rare event for carmakers that aren’t in the grip of a financial crisis or corporate scandal.Dongfeng still has ample liquidity. Its ratio of short-term assets to short-term liabilities was 1.36 at the end of December, above the industry average. But China’s auto market is grim, with sales declining from a year earlier for 12 straight months even as the government ratchets up pressure to spend money on the switch to electric vehicles. Faced with such headwinds, 2.2 billion euros could come in handy.At present there’s no word that Dongfeng is planning to unwind the JV to manufacture PSA cars in China – but it would probably welcome such an outcome, especially if it could persuade its European affiliate to pay to take more control of the partnership in the manner of the deal last year between BMW AG and Brilliance China Automotive Holdings Ltd.Dongfeng’s partnerships with Nissan and Honda are clearly the better performers, and PSA may feel it needs more of a free hand to turn around its Chinese operation. If a sale of a strategic stake can help ease the path toward that happier outcome, both sides stand to benefit.To contact the author of this story: David Fickling at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Today we'll look at Geely Automobile Holdings Limited (HKG:175) and reflect on its potential as an investment. In...
FRANKFURT/BEIJING (Reuters) - China's Beijing Automotive Group Co Ltd (BAIC) has bought a 5% stake in Daimler, cementing their long-standing alliance after China's Geely emerged as a potential rival by also taking a stake in the German automaker. BAIC has been Daimler's main partner in China for years, operating Mercedes-Benz factories in Beijing through Beijing Benz Automotive.
British sports car maker Lotus revealed its pure electric "hypercar" on Tuesday, the first completely new vehicle to be launched under the stewardship of Chinese firm Geely which acquired a majority stake in 2017. "It will re-establish our brand in the hearts and minds of sports car fans and on the global automotive stage," said Lotus Chief Executive Phil Popham.
Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of...
* European stocks fall after pharma stocks slide * STOXX 600 closes down 0.1%, healthcare stocks weigh: Siemens Healthineers -6% * Autos drag Germany's DAX 0.3% lower * UK housebuilders rise on upbeat survey * Indivior soars after lifting profit guidance, Reckitt rises after U.S. settlement Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: email@example.com CLOSING SNAPSHOT: EUROPE CLOSES AT 2-WEEK LOW (1601 GMT) Profit taking in pharma stocks has derailed the Powell-induced gains, pushing the STOXX 600 into the red in late afternoon trade and to its lowest close since June 28.
* European stocks fall after pharma stocks slide * STOXX 600 down 0.2%, healthcare stocks weigh: Siemens Healthineers -7% * Autos drag Germany's DAX 0.3% lower * UK housebuilders rise on upbeat survey * Indivior soars after lifting profit guidance, Reckitt rises after U.S. settlement Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: firstname.lastname@example.org HEALTH CHECK FOR PHARMA AS U.S. SHIFTS FOCUS TO HIGH DRUG PRICES (1527 GMT) European pharma stocks are taking a hit this afternoon on worries that U.S. Congress will now look at doing something about high drug prices.
China's top search engine operator Baidu Inc has joined hands with Zhejiang Geely Holding Group and Japan's Toyota Motor Corp to cooperate on areas related to artificial intelligence (AI) amid a push for self-driving cars. Under their partnership, Geely [GEELY.UL] and Toyota have joined Apollo, an autonomous driving platform by Baidu. Baidu will provide Apollo Minibus, a software product for autonomous bus vehicles, to Toyota's e-Palette vehicles in the future, and will work with the automaker to explore more uses of autonomous driving technologies, said Li Zhenyu, vice president of Baidu who is in charge of its intelligent driving unit.
China's top search engine operator Baidu Inc has joined hands with Zhejiang Geely Holding Group and Japan's Toyota Motor Corp to cooperate on areas related to artificial intelligence (AI) amid a push for self-driving cars. Under their partnership, Geely and Toyota have joined Apollo, an autonomous driving platform by Baidu. Baidu will provide Apollo Minibus, a software product for autonomous bus vehicles, to Toyota's e-Palette vehicles in the future, and will work with the automaker to explore more uses of autonomous driving technologies, said Li Zhenyu, vice president of Baidu who is in charge of its intelligent driving unit.
Geely Automobile Holdings Limited's (HKG:175) most recent earnings announcement in April 2019 revealed that the...
Li Shufu's Zhejiang Geely Holding Group [GEELY.UL] intends to remain a long-term investor in Swedish truckmaker AB Volvo , a source close to the Chinese firm said, denying media reports that it was gearing up to sell its stake. Geely became Volvo's second largest owner by voting rights last June after assuming an 8.2% stake in the company that came with 14.9% voting rights. The move followed Geely's purchase of a 10% stake in Volvo's main rival Daimler , raising questions in Sweden about its intentions for one of the country's largest employers.
China-based Zhejiang Geely Holdings is tapping Zenuity, the joint venture between Volvo and Swedish technology company Veoneer, as its preferred driver assistance and autonomous vehicle software supplier for its range of car brands. The decision means Zenuity's software will likely end up in vehicles under the brands Geely Auto, Geometry, Volvo Cars, performance brand Polestar, British carmaker Lotus and the subscription-based automaker Lynk & Co. Geely Holdings' total group sales last year were 2.15 million vehicles, according to the company.
China's Geely has chosen Zenuity, a joint venture between its Volvo car marque and Swedish technology group Veoneer, as its preferred supplier for assisted and self driving software. Geely's deal, encompassing car brands including Geely Auto, performance brand Polestar, subscription-based electric carmaker Lynk & Co and British sports car maker Lotus, provides a welcome boost for Zenuity. Veoneer said in April it was carrying out a review of Zenuity, which is focused on developing software for assisted driving features (ADAS) such as lane keeping and autonomous driving (AD), and seeking efficiencies from the venture.
South Korean battery maker LG Chem Ltd said on Thursday it had signed an agreement to set up a joint venture with China's Geely Automobile Holdings Ltd to produce batteries for electric vehicles. The joint venture would have annual production capacity of 10 GWh by the end of 2021, and its products would be supplied to Geely's electric vehicles from 2022, LG Chem said in a statement. The two parties would invest $94 million each in the venture, LG Chem said in a statement.
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will...
Sheng Yue Gui has been the CEO of Geely Automobile Holdings Limited (HKG:175) since 2006. This analysis aims first to...
On Wednesday, Italy’s Mediaset SpA said it had acquired almost 10 percent of German commercial broadcaster ProSiebenSat.1 Media SE. As I argued with the M7 deal, for Mediaset and ProSieben, there’s absolutely a logic to teaming up. The digital onslaught means that broadcasters are losing viewers to Netflix Inc. and Amazon.com Inc.’s Prime, and hemorrhaging advertisers to Alphabet Inc.’s Google and Facebook Inc. In response, they’re scrambling to build video-on-demand platforms that appeal to their local audiences, and advertising technology offerings to stanch the loss of brands.
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll look at...
Daimler will cut development costs of new Mercedes-Benz cars by a significant amount by 2025 and will intensify alliances with rivals as a way to improve margins, Ola Kaellenius, the future chief executive, said on Monday. "The cost structure of the electric car is above that of the combustion engine car. From where we are now, we need to make a significant step by 2025 in terms of cost," Kaellenius said, declining to provide specific figures.
BEIJING/FRANKFURT (Reuters) - China's BAIC Group is seeking to buy a stake of up to 5 percent in Daimler as a way to secure its investment in Chinese Mercedes-Benz manufacturing company Beijing Benz Automotive, three sources familiar with the matter told Reuters. BAIC informed Daimler of its intention to buy a 4-5 percent stake in the German maker of Mercedes-Benz cars earlier this year, two of the three sources said. BAIC has asked local authorities in Beijing to support a 4-5 percent stake purchase, two of these sources said.
May 9 (Reuters) - Zhejiang Qianjiang Motorcycle Co Ltd : * SAYS CONTROLLING SHAREHOLDER ZHEJIANG GEELY HOLDING GROUP SIGNS AGREEMENT TO TRANSFER ALL OF ITS 135.0 MILLION SHARES, OR 29.77 PERCENT STAKE, ...